Melbourne City Mission takes leasing dispute to court

Melbourne City Mission is facing a $750,000 loss after a wealthy property developer allegedly backed out of a deal to help pay for the charity's new headquarters.

The dispute comes on the heels of a major cost blow-out on the project, with the community outreach group budgeting $1.65 million, but spending $3.5 million on the South Melbourne property.

The Sunday Age believes front-line services have not yet been affected by the unpaid debt or unanticipated construction costs. The 160-year-old charitable group runs family crisis centres, disability programs and homeless support services.

MCM agreed to lease the building on Kings Way for 15 years on the condition that owners Siamidis Properties and United CKS contribute up to $750,000 for its refurbishment, according to court documents. The ageing, three-storey property was renovated, with the owners agreeing to pay for cleaning, painting, regulatory works and asbestos removal.

But MCM alleges that Siamidis Properties and United CKS have repeatedly refused to make any financial contribution. The dispute dragged on for more than a year before MCM filed a lawsuit in the Supreme Court of Victoria.

Sue Parkes, MCC's director of fund-raising, marketing and communications, declined to comment because the matter is before the court.

Siamidis Properties and United CKS are controlled by the Siamidis family - Constantinos, Steve and Chris Siamidis - who own a string of properties in Fitzroy North, Thornbury, South Melbourne and Brunswick, as well as a medical clinic and a pharmacy.

Dr Chris Siamidis, who was named for misusing Medicare in 2006 by the Professional Services Review, did not respond to a request for comment.